Multiple Choice
The money supply would tend to fall if:
A) banks decide to keep more excess reserves and people convert more of their demand deposits to currency.
B) banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts.
C) banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts.
D) banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.
Correct Answer:
Verified
Correct Answer:
Verified
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